Lender FAQs

Home100 General Program FAQ

How do I become a lender?

Lenders must be approved by U.S. Bank HFA Division to participate in the REI Home100 Program.  US Bank serves as the Master Servicer and purchases the loans associated with the Home100 Program.  Interested lenders should contact:

Dena Sherrill, Director of Housing at dsherrill@reiok.org
Jeremy Layman, Housing Manager at jlayman@reiok.org

***Third Party Origination is not allowed***

What are the first mortgage interest rates?

REI Down Payment Assistance sends the first mortgage interest rates daily on a rate sheet email and posts on the lender portal at www.reihome100.org by 9:00 A.M. Central Time. Should you wish to be added to the daily rate sheet email list, please contact us at reidpa@reiok.org.

All loans must be delivered and purchased by U.S. Bank within 60 days of rate lock.  An extension can be purchased if needed. Please see the program summary via the link at the bottom of the page for more detailed information.

Does the borrower have to be a first-time homebuyer?

No, there is no first-time homebuyer requirement.  Please see the program summary via the link at the bottom of the page for more detailed information.

What are the lender compensation, fees, and purchase?

Please review the program summary via the link at the bottom of the page for compensation, loan fees, and purchase requirements.

How long does the process take?

Lenders should be able to close a loan with the REI Home100 Program in the same amount of time it takes to close a traditional mortgage loan.

Can the borrower receive a gift for investment property?

No, the borrower must utilize the gift on their primary residence.

Home100 Government Loan Program FAQ

What types of loan programs are available?

We offer a 30 year fixed rate loan with down payment assistance on the following loan products:

  • FHA – 203(b), 234(c) & 203ks (lenders must have an additional approval from U.S. Bank HFA Division to originate 203ks loans)
  • VA – 203(b) & 234(c)
  • Rural Housing Guaranteed Loan
  • Rate/term refinance loans are not available at this time

REI is not QM Exempt  – all loans must meet QM guidelines.

How does DPA work?

The down payment assistance is in the form of a gift and is based on a percentage of the total first mortgage loan amount.

  • Amount of assistance is 3.5%, 4.0% or 5% of total first mortgage loan amount (determined by the lender).
  • The funds may be used to fund up to 100% of the borrower’s cash requirement to close, including the down payment, closing costs, pre-paid items and other related mortgage loan fees and expenses. No portion of the gift funds can be paid to the borrower unless the borrower is being reimbursed for an overage of his/her earnest money deposit to the extent the minimum borrower contribution has been satisfied.
  • REI will table fund the gift funds at closing

See the program summary and income guidelines via the links at the bottom of the page for more detailed information.

What are the underwriting, credit score, and DTI guidelines?

Loans may be underwritten through an automated underwriting System (DU or LP) – Rural Development Loans (GUS).    Source of funds should be Non-Seller funded Non-Profit (not a government agency)

Automated Underwriting

Product TypeProperty TypeMinimum FICOMaximum DTI
DU, LPA, GUS
Required Reserves
FHA1-2 Units
Condos/Townhomes
64045%As determined by DU, LPA, GUS
FHA1-2 Units
Condos/Townhomes
68045.01 - 50%As determined by DU, LPA, GUS
FHAManufactured Homes68045%As determined by DU, LPA, GUS
VA
USDA/RD
1-2 Units
Condos/Townhomes
64045%As determined by DU, LPA or GUS

Manual Underwriting Guidelines

Loans may only be manually underwritten for erroneous, inaccurate, or insufficient credit. Loans must comply with the requirements of the FHA, VA, or USDA/RD guidelines per the selected product. This includes but is not limited to the following requirements:

  • EXCEPTION: FHA Loans or Manufactured Loans
  • If the HFA, VA, or USDA/RD require more in reserves than listed in the LTV / DTI / FICO tables below; the greater number of months must be documented.
Product TypeProperty TypeMinimum FICOMaximum Ratios - HousingMaximum Ratios - Total DebtMinimum Required Reserves
FHANOT ALLOWED
USDA1-2 Units
Condos/Townhomes
64029%41%2
VA1-2 Units
Condos/Townhomes
640N/A41%2

Does the borrower have to take a homebuyer education class?

Homebuyer education is recommended, but not required.

Are there income restrictions?

  • FHA & VA – The borrower’s qualifying income must not exceed Program Income Limits. Click the links at the bottom of the page to see the income limits.
  • Rural Development Loans – Income is based on Adjusted Household Income per Rural Development’s Guidelines. Income limits can be found at the following link: https://www.rd.usda.gov/files/RD-GRHLimitMap.pdf

Lenders will be responsible for ensuring that the income meets program guidelines.

Are Seller concessions allowed?

Seller concessions are allowed as determined by the First Mortgage Program selected.

Does the borrower have to pay back the gift?

No, the borrower is not required to pay back the gift upon sale or refinance; it is a true gift to the borrower.

Home100 Conventional Loan Program FAQ

What are the lender compensation, fees, and purchase?

Please review the program summary via the link at the bottom of the page for compensation, loan fees, and purchase requirements.

What types of loan programs are available?

We offer a 30 year fixed rate loan with down payment assistance on the following conventional loan products:

  • Fannie Mae HFA Preferred up to 97% LTV
  • Freddie Mac HFA Advantage up to 97% LTV

REI is not QM Exempt  – All loans must be QM loans based on New QM Rule.

How does DPA work?

The down payment assistance is based on a percentage of the total first mortgage loan amount.  The type of assistance provided depends upon the conventional first mortgage loan type as shown below:

  • Freddie Mac HFA Advantage – amount of assistance is 0%, 3.5%, or 4.0% of the total first mortgage loan amount, determined by the participating lender.  The assistance is provided to the borrower in the form of a gift.
  • Fannie Mae HFA Preferred – amount of assistance is 0%, 3.5%, 4.0%, or 5.0% of the total first mortgage loan amount, determined by the participating lender.  The assistance is provided to the borrower in the form of a 7-year forgivable second mortgage.  The second mortgage loan principal will be forgiven 1/84th each month, beginning with the first full month after closing.  There is no forgiveness for partial months.  The outstanding principal of the second mortgage loan will be due and payable in any of the following instances:
    • The sale, disposition, or transfer of the property
    • The refinancing or payment in full of the first mortgage loan
    • Failure to occupy the property as principal residence for a period of more than sixty (60) days
    • Upon acceleration of the first mortgage loan or second mortgage loan for any reason
  • The assistance funds may be used to fund up to 100% of the borrower’s cash requirement to close, including the down payment, closing costs, pre-paid items, single or split MI fees, and other related mortgage loan fees and expenses.  No portion of the assistance funds can be paid to the borrower unless the borrower is being reimbursed for his/her earnest money deposit and pre-paid expenses, to the extent the minimum borrower contribution has been satisfied.  Under the rate-term refinance option, any funds above the amount needed to pay the borrower’s loan-related costs must be used to reduce the principal amount of the first mortgage loan.
  • REI will table fund the assistance funds at closing

Please see the program summary via the link at the bottom of the page for more detailed information.

What are the underwriting, credit score, and DTI guidelines for Fannie Mae HFA Preferred?

Fannie Mae HFA Preferred

DU finding of approve/eligible and meet all other guidelines listed in this Program Summary. (HFA Preferred is available through DU using the “Additional Data Screen – then select HFA Preferred.)

Property TypeMaximum
LTV
Maximum
TLTV/CLTV
Maximum
DTI
Minimum
Fico
Required Reserves
1 Unit
Condos/Townhomes
97%105%45%640As determined
by DU
1 Unit
Condos/Townhomes
97%105%45.01 - 50%680As determined
by DU
Manufactured Homes -
Multi Section only
95%105%45%680As determined
by DU
MH Advantage97%105%45%680As determined
by DU

Must follow Fannie Mae HFA Preferred Manufactured Housing Guidelines and US Bank Manufactured Housing Guidelines as posted on US Bank Website (scroll to Housing Finance Agency Services and click Learn More)

Fannie Mae MH Advantage – Must have MH Advantage sticker affixed to manufactured home.

MANUAL UNDERWRITING GUIDELINES  – Loans may be manually underwritten for erroneous, inaccurate, or insufficient credit.   

EXCEPTION:  Manual Underwriting is not allowed on Manufactured Housing

  • For Fannie Mae HFA Preferred if one or more borrowers have no credit score, lenders must follow Fannie guide chapters B5-6-03 and B3-5.4-01, B3-5.4-02, and B3-5.4-03 for manual underwriting with non-traditional credit.
  • If the HFA, GSE, or MI require more in reserves as listed in LTV / DTI / FICO tables below; the greater number of months must be documented.
Property TypeMaximum
LTV
Maximum
TLTV/CLTV
Maximum
DTI
Minimum
Fico
Minimum
Required
Reserves
1 Unit
Condos/Townhomes
95%105%36%6802
1 Unit
Condos/Townhomes
95%105%36%6606
1 Unit
Condos/Townhomes
95%105%45%7202
1 Unit
Condos/Townhomes
95%105%45%7006

What are the underwriting, credit score, and DTI guidelines for Freddie Mac HFA Advantage?

Freddie Mac HFA Advantage

LP finding of Accept/Eligible and meet all other guidelines listed in this Program Summary. (Offering Identifier: HFA Advantage (LPA v5.0.06 or higher Home Possible Advantage for HFA’s (LPA Legacy) or Using the code 251.)

Property TypeMaximum
LTV
Maximum
TLTV/CLTV
Maximum
DTI
Minimum
FICO
Required
Reserves
1 Unit
Condos/Townhomes
97%105%45%640As determined
by LP
1 Unit
Condos/Townhomes
97%10545.01-50%680As determined
by LP

MANUAL UNDERWRITING GUIDELINES – Loans may be manually underwritten for erroneous, inaccurate, or insufficient credit.

  • For Freddie Mac HFA Advantage at least one borrower must have a usable credit score, meet the minimum FICO score requirements, and adhere to Freddie Mac guidelines for HFA Advantage.
  • If the HFA, GSE, or MI require more in reserves as listed in LTV / DTI / FICO tables below; the greater number of months must be documented.
Property TypeMaximum
LTV
Maximum
TLTV/CLTV
Maximum
DTI
Minimum
FICO
Minimum
Required
Reserves
1 Unit
Condos/Townhomes
97%105%45%6602

Are there income restrictions?

The borrower’s qualifying income must not exceed Program Income Limits. The Freddie Program offers an under 80% of Area Median Income Option and an over 80% of Area Median Income option (See Program Summary for details about program benefits at each income option). Click the links at the bottom of the page to see the income limits.

Lenders will be responsible for ensuring that the income meets program guidelines.

Does the borrower have to take a homebuyer education class?

Required if all borrowers are first-time homebuyers, at least one borrower must complete pre-purchase homebuyer education and counseling.  The following courses listed are acceptable:

Lender must retain a copy of the certificate of course or counseling completion in the loan file.

Which Mortgage Insurance (MI) companies participate in the program?

  • Arch
  • Essent
  • Enact
  • MGIC
  • National MI
  • Radian

What is the MI Coverage?

MI Coverage for Qualifying Incomes
Fannie Mae and Freddie Mac 80% and below AMI
MI Coverage for Qualifying Incomes
Freddie Mac ABOVE 80% of AMI
(Standard MI)
18% for LTVs >95% and < = 97%35% for LTVs >95% and < = 97%
16% for LTVs >90% and <= 95%30% for LTVs >90% and <= 95%
12% for LTVs >85% and <=90%25% for LTVs >85% and <=90%
6% for LTVs >80% and <= 85%12% for LTVs >80% and <= 85%

What are the MI Payment Options?

  • Borrower Paid – monthly with annual renewal
  • Split Premium
  • Single Premium

****Base loan plus financed MI cannot exceed 97% LTV.****

Are Seller concessions allowed?

  • 3% maximum for CLTV greater than 90%
  • 6% maximum for CLTV less than or equal to 90%.

May be used for closing costs and/or single or split MI premiums

Does the borrower have to pay back the assistance?

  • The assistance the borrower receives with the Freddie Mac HFA Advantage loan is a gift and does not have to be repaid.
  • The assistance the borrower receives with the Fannie Mae HFA Preferred loan is a 7-year forgivable second mortgage, forgiven 1/84th each month, beginning the first full month after closing.  There is no forgiveness for partial months.
  • Please see the program summary, via the link at the bottom of the page, for more detailed information.